May 21 (Reuters) - Futures for Canada's main stock index
drifted lower on Tuesday, pressured by weak commodity prices,
while investors braced for key inflation data that could offer
fresh insights into the Bank of Canada's interest rate cut
timeline.
June futures on the S&P/TSX index were down 0.3% at
6:26 a.m. ET (10:26 GMT).
The materials index is expected to slip on lower
gold prices as profit-taking kicked in after the bullion hit
record high levels on Monday, while silver followed suit.
The energy sector could also see a downturn,
tracking losses in crude prices as expectations of
higher-for-longer U.S. interest rates weighed on investor
sentiment.
Meanwhile, Canada's consumer prices data for the month of
April, due at 0830 ET, will be crucial in determining the timing
of the interest rate cuts from the country's central bank.
On an annual basis, the inflation likely rose 2.7% in April,
after a reading of 2.9% in the previous month. Month-on-month,
the inflation print is expected to show a 0.5% gain after rising
0.6% in March.
Money markets anticipate the first BoC rate cut in July;
while the Federal Reserve is seen to hold rates until September.
The median estimate of seven analysts in a straw poll showed
the BoC would be willing to cut interest rates three times ahead
of the Fed's first move before a declining currency threatens to
endanger the inflation outlook.
The Toronto Stock Exchange's S&P/TSX composite index
closed higher on Friday, powered by surging commodity
prices.
U.S. index futures were muted on Tuesday, as investors
refrained from placing big bets before AI chip leader Nvidia's
earnings this week and amid policy caution from the Fed
officials ahead of the central bank's meeting minutes.
COMMODITIES AT 6:26 a.m. ET
Gold futures: $2,421; -0.7%
US crude: $78.73; -1.3%
Brent crude: $82.69; -1.2%
($1= C$1.3629)